Set Up a Call Center in India

Updated on Tuesday 09th July 2019

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The revenues of the call center industry in India are growing at a solid pace. In 2012, the total revenues of the call center companies operating in India reached a value of US $400 million, while in 2017, the value increased at US $651 million. 
 
For the current year, the estimates are showing that the revenues will further increase to a value of US $710 million. Our team of consultants in company formation in India can assist foreign businessmen with advice on how to register a call center in this country. 
 

What documents are necessary for â€‹call center registration in India? 
 

Investors who want to register a company in India that will operate as a call center will need to provide a set of legal documents to the local authorities in charge with the incorporation procedure. A call center in India is required to register under the Other Service Providers (OSP), as prescribed by the New Telecom Policy. Thus, to register as a OSP, the company’s representatives will have to submit the following set of documents with the Department of Telecommunication
 
  • the company’s certificate of incorporation, which is issued by the Registrar of Companies;
  • the memorandum and the articles of association, alongside a power of attorney which authorizes the company’s representatives signatures;
  • details on the OSP activities that will be developed by the call center;
  • the list of the company’s directors, with their names and addresses. 
 

Why invest in the Indian call center industry? 
 

Businessmen searching for a suitable market to invest in the call center industry can easily choose India, as this country stands as one of the main markets for call centers. One of the main reasons for which foreign investors prefer to register a company in India in this sector is determined by the quality of the local workforce, which is characterized by a high degree of language skills, especially in English, which is one of the basic foreign languages used by those providing call center services. Foreign investors must consider the following: 
 
  • the total market size of the Indian call center industry was estimated at $28.19 billion (at the level of 2017);
  • originally, the industry represented only 1,2% of the country’s gross domestic product (GDP);
  • the highest GDP contribution of the Indian call center industry stood at 5,4%;
  • the industry benefits from governmental support and $70 million were invested in this sector;
  • the Indian market is characterized by more than 500 multinational companies, providing their services in more than 35 foreign languages. 
     
As we mentioned above, one of the main reasons for which international companies operating as call centers set up their business operations in India is given by the quality of the local workforce. More than this, foreign businessmen are also drawn on this market due to the advantageous costs – labor costs in India are much lower compared to other markets which offer the same level of skills; our team of consultants in company formation in India can offer consultancy services on the employment costs available here. 
 
With its large population, India is considered the second jurisdiction at a global level when referring to the number of English speakers, after the United States of America. More importantly, the Indian market is characterized by a highly developed infrastructure; the local authorities have invested in developing up-to-date technology and an advantage of an Indian call center is that it generally benefits from the most advanced technology needed to perform its operations. 
 

What types of incentives are available for Indian call centers? 
 

Since the Business Process Outsourcing (BPO) is a major economic activity in India, the local government created over the years various policies that can further develop this sector and attract even more foreign investments. Our team of consultants in company registration in India can assist foreign investors with advice on the investment policies available for this sector, but it is necessary to know that the following apply: 
 
  • Indian BPO Promotion Scheme – a program launched in 2015, with the purpose of increasing the number of available jobs in the industry;
  • the program is designed to create more than 140,000 direct jobs in the BPO sector;
  • North East BPO Promotion Scheme – as its name states, was designed for call centers and other BPO businesses operating in the northeastern part of the country;
  • through the North East BPO Promotion Scheme, companies located in specific regions of the country can receive financial support, with the purpose of developing the BPO sector in regions such as Mizoram, Sikkim or Tripura;
  • the same program aims at employing young workforce in the call center sector
     
A characteristic of this market is that the call center industry has expanded not only in the urbanized regions of India, but investors have also set up operations in the rural areas. The main reason behind this expansion is related to the operating costs, which are considerably lower compared to the ones available in large urban regions of the country. 
 
A positive aspect of this expansion is that the call center industry provided jobs to the local rural communities; employment in this sector is possible even in the rural regions, as the local citizens have the minimum necessary skills for this type of job. It is important to know that 6 out of 10 jobs available for the rural call center industry in India are occupied by women. 
 
Foreign investors starting a company in India must also know that the local government provides the right of opening a business in this sector with full foreign ownership and this had a positive effect on the development of this business sector; our team of specialists can provide information on how to form a company in India in this sector as a foreign investor and can also assist with in-depth details on the types of permits necessary for BPO businesses
 

What services do Indian call centers offer? 
 

The Indian call centers provide a set of services, most popular being services such as customer support, technical and IT support, telemarketing, insurance processing, data entry and data processing, bookkeeping and accounting. Depending on the specific activities developed by the company, additional registration procedures can be imposed and our team of specialists in company registration in India can assist with advice. 

Besides these, the Indian call center industry relies on services such as: inbound call center services, e-mail support services, chat support services or CATI services. Indian call centers are also specialized in providing helpdesk services or even transaction processing services or disaster recovery services.
 
India is one of the largest markets for Business Processing Outsourcing (BPO) activities, being the top destination of investors across the world when setting up a call center. International call centers have a strong presence on the Indian market, as they could be set up here starting with 1999, following the regulations of the New Telecom Policy, imposed by the Telecom Commission. Businessmen are invited to contact our team of consultants in company registration in India, who can can provide full representation in opening a local company.